What do leniency programs provide to members of a cartel?

Leniency programs are designed to encourage members of a cartel to come forward and report the cartel's activities to competition authorities. The main incentive provided to these members is immunity or reduced penalties for cooperating with the investigation. By offering immunity for those who report, these programs aim to dismantle illegal cartels that harm competition and, subsequently, consumers.

The concept behind leniency is to break the secrecy surrounding collusive practices by providing a strong incentive for at least one entity involved in the cartel to disclose the wrongdoing to authorities. When a cartel member chooses to report the cartel, they potentially face less severe consequences than their counterparts who do not cooperate. This strategy helps to uncover anti-competitive behavior and promotes a more competitive market environment.

While other options like increased market share or monetary rewards might be appealing, they do not accurately reflect the primary purpose of leniency programs. The essence of such programs is focused on reducing legal repercussions in exchange for valuable information about anti-competitive practices.